The two sides started negotiations in October, after Danone recalled its Dumex formula products in China, where demand for
foreign branded infant formula is high due to a series of domestic food quality issues.
Not exact matches
This damaged the reputation of local firms and boosted the market share of
foreign brands, which now account for close to 80 percent of the
infant formula market in major cities, according to data from Rabobank.
Some Chinese
infant formula companies have started forming partnerships with
foreign firms to try to boost
brand recognition and gain technical know - how.
Foreign milk powder
brands and imported formula command a premium in China, following numerous safety scandals involving Chinese
infant formula including the deliberate contamination of baby powder in 2008 with melamine that killed at least six babies and sickened 300,000.
Last week, Chinese authorities began an investigation into possible price - fixing and anti-competitive practices at five
foreign companies manufacturing
infant formula milk, including Nestle SA, Abbott Laboratories, Mead Johnson Nutrition Co, Danone's Dumex
brand and Wyeth Nutrition.
China says
foreign makers of
infant formulas are fixing prices (did you ever wonder why the prices of different
brands of formula or baby food were all the same?).